A total of 11pc more property agents reported a fall in interest from retailers rather than a rise compared with the final quarter of 2011, according to the latest commercial market survey from the Royal Institution of Chartered Surveyors (RICS).

The declining demand is despite the number of empty shops on high streets already being at record levels of more than 14pc. The survey dampens hopes of a recovery in the retail property market.

The collapse into administration of retailers Game and Peacocks have been high-profile examples of the tough conditions on the high street, which have seen hundreds of stores close so far in 2012.

However, before the new RICS survey, high streets had been given hope by an easing of the eurozone debt crisis and economic data suggesting growth in the economy and consumer confidence.

Simon Rubinsohn, RICS chief economist, said: “The retail property sector continued to suffer in the early part of the year with falling demand resulting in the continuing negative outlook for future rental values and activity.

“With the Government’s response to the Portas Review having been announced last week, it remains to be seen what impact this will have on the high street and the retail sector as a whole.

“Across many parts of the country, it seems that the commercial property sector in general is continuing to struggle, with a lack of affordable finance proving a big barrier to growth.”

One property agent in East Anglia said the beginning of 2012 had been very difficult for retail and “this is likely to continue”. Adrian Fennell added: “The positive is that prime shops are still being taken up but at reduced rental levels or more incentives.”

However, Richard Calder of Calders Chartered Surveyors in Tamworth, Staffs, said there had been a lift in activity and demand since Christmas from retailers for smaller premises.

“It remains to be seen as to whether this is sustained as I believe the market remains hyper-sensitive to economic and political events virtually on a daily basis,” he added.

The RICS survey found 17pc more property surveyors reporting a rise rather than a fall in the amount of empty shops in the first quarter of 2012. The rise in available space coupled with reduced demand means agents are pessimistic about the prospect for rents. RICS said that 28pc more surveyors predicted a fall in rents over the next three months and that there was not a single region in the UK where rental expectations were positive.

However, Charles Fifield of Fifield Glyn in Cheshire said there was a polarisation in the market: “I’ve done a few more retail lettings over the past quarter than I would have expected, both before and after Christmas. Some areas are ghost towns, some are filling up nicely, either this is a patchy recovery or an uneven recession.”

Outside of retail, RICS said demand for office space stabilised during the three months to March 31, while it increased slightly for industrial property. Overall in the UK, 3pc more surveyors reported a rise in demand for commercial property space compared with the previous quarter.

The growth in empty office and industrial space also slowed, according to surveyors. A net balance of 4pc more respondents said empty commercial property grew in the first quarter of 2012, the lowest percentage since the final quarter of 2010. However, RICS warned this reflected a halt in new developments as much as an increase in demand.